One common objection that I come across when I consult with Candidates who are looking for a franchise to get into, has to do with the thrill factor as a selection criteria. In other words, Candidates often want their top choice for a franchise to be the one that "jumps out", the one that gets them "excited".
That is often a very misleading way to go about finding the franchise that is just right for you, the Candidate. A franchise opportunity can be very exciting, with products or services that feel "right" to your temperament and personality. It can even present extremely well when you go through the normal discovery cycle. Even if that is true, it can still be the wrong choice for you when you factor in the geographical area you will operate in, the demographic composition of that area, the competition and saturation factors, and the sustainability of the product or service offering in the long term.
As I covered in another recent article, "Buying a Franchise: It's all about you", buying the right franchise is not about how much you like its product or service and is not about being first to market in your geography. It is also not about following the hottest trend based on the latest statistic, choosing the franchise with the best track record, or even about following someone else's lead who was successful doing it. It's about finding a business that fits your skills, lifestyle, and goals & objectives. It's about reducing business risk by matching your skills and abilities to the optimum franchise opportunity for YOU, which would result in the best long term success.
At the end of the day, it's about whether you can convert your investment into a cash flow you can be happy with. Believe me, the thrill and excitement of getting into a franchise that gets your heart pumping really hard can quickly turn into an anxiety attack when you suddenly realize that paying customers are not as willing to share that enthusiasm.
Having the opportunity to be a Business Broker for the last 10 years, (besides being a Franchise Consultant), has given me a unique perspective and exposure to entrepreneurs that have found solid success in not-so-glamorous businesses. Their excitement peaks every time they go to the bank to deposit their cash.
The thrill factor in choosing a franchise must be balanced with a thorough due diligence investigation. Franchise Consultants like myself can be of great help in navigating through that process. Also, the information is readily available through the Franchise Disclosure Document and the Discovery process, including a thorough Franchisee validation process that needs to include the successful and not-so-successful Franchisees in the Franchisor system.
Mr. Georgiou is currently the President of CrossRoads Business Brokers, Inc. & www.TheFranchiseCrossRoads.com, and has been involved in a great number of business transactions over the last 10 years. He is also a national Franchise Consultant with FranChoice advising hundreds of franchise Candidates in their search for a franchise. Since 2008, he has been a successful multi-unit owner/operator of a Home Care Franchise in California. Previously, Mr. Georgiou was a former Senior Manager with KPMG Consulting (BearingPoint) where he advised and assisted various Mid-Market companies with operations, strategy, and systems.